Bank of America waiving future deficiency judgements

It is possible? Has Bank of America ever waived their right to any furture deficiency judgements against the homeowner?

I have been told they will never issue a letter saying they will do so. Has anyone been successful at getting this letter from this bank?

I have an approval on a FHA short sale but I have been unsuccessful at getting the negotiator (via equator) to issue a debt forgiveness letter. My client (the seller) will not proceed until we have this letter.

Replies to This Discussion

It has been my experience that B of A will not forgive the deficiency in writing. Does your client meet the general requirements for HAMP? It is my understanding that B of A is participating in HAMP which means they have to participate in the government's short sale program, HAFA. If your client qualifies for HAMP, they qualify for HAFA. The program is supposed to start soon. One of the requirements of the program is that the deficiency is forgiven and your client is not reqiured to go through the HAMP modification program first. They just have to be qualified to participate in HAMP. If there is a foreclosure date and it is after 4/5, you can re-submit your short sale request through HAFA. You might try using that as leverage with B of A now. Either they forgive the deficiency in writing now or you re-request a short sale through HAFA once the program starts.

Katerina, did you have to get an attorney involved to get BofA to do it? If not, did you have to escalate or what? Everytime I ask a negotiator to remove the deficiency language at BofA the answer is no. Please share your technique :-)

If you look at all the mortgage lien releases filed by BoA you will see that practically ever one says it has received full payment of the debt, the indebtedness is paid, the note is paid in full, or similar langauge. We did a DIL a few weeks ago and the DIL document (the deed) that BoA prepared through their attorney said the consideration for the deed was full release of the indebtedness of the loan.

Richard, That is what I have seen as well. The demand letter however does not have that language. It's a shame our seller can't see the release of lien language until after the fact.

Richard Zaretsky said:

If you look at all the mortgage lien releases filed by BoA you will see that practically ever one says it has received full payment of the debt, the indebtedness is paid, the note is paid in full, or similar langauge. We did a DIL a few weeks ago and the DIL document (the deed) that BoA prepared through their attorney said the consideration for the deed was full release of the indebtedness of the loan.

That is great! I would love to know how you went about this as well. Did or you use and attourney to negotiate for you? My client was referred to an attorney in Las Vegas. He advised her to hire him and he suggested she keep the short sale active for at least three more years because the longer she holds the property the better changes of getting a deficiency release.

Katerina Gasset said:

That is not true. We have gotten a full release and NO deficiency. We also have been able to get BofA to waive their right to pursue deficiency after the fact.

This is what I was looking for here. My potential seller (not yet listed) is afraid of deficency judgements. We are in California and it's a refi. I am pretty sure he doesnt have a NOD on the property yet. Should I have him wait until April for HAFA to list just in case? B of A does not have a good rep of waiving deficiency judgements. Please let me know what you think.

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